A trader owes a merchant ₹8,000 due in one year. The trader wants to settle the account after 2 months. If the rate of interest is 9% per annum, then how much should he pay (rounded off value)?

Correct option is A

Given:

Future value ($$FV$$) = ₹8000

Rate ($$r$$) = 9% (Annual Intrest rate)

Time ($$t$$) = 10 month (If pay after two month: The remaining time before the original due date : Remaining time = 12 month-02 month= 10 month)

Formula Used:

Present value($$PV$$​) = $$\frac{FV}{(1+\frac{r}{100}\times \frac{t}{12})}$$ 

Solution:

Substitute the value in above formula:

​$$PV$$= $$\frac{8000}{(1+\frac{9}{100}\times \frac{10}{12})}$$ 

= $$\frac{8000}{(1+\frac{9}{120})}$$ 

= $$\frac{8000}{(\frac{120+9}{120})}$$ 

=$$\frac{8000}{(\frac{129}{120})}$$​​

=$$\frac{8000\times120}{129}$$ 

=7441.86 $$\approx$$₹7442

Thus the correct answer is (A)

​​